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15 Ariz. L. Rev. 194 (1973)
The Deed of Trust: Arizona's Alternative to the Real Property Mortgage

handle is hein.journals/arz15 and id is 198 raw text is: The Deed of Trust: Arizona's Alternative to The Real Property Mortgage Gary E. Lawyer In recent years Arizona's real property mortgage laws have been the subject of considerable criticism from members of the state mort- gage banking industry. Spokesmen for the industry contend that the mortgage foreclosure process in Arizona is unnecessarily time-consum- ing and expensive.' To foreclose a $25,000 mortgage in an uncon- tested action, for example, requires approximately 8 months; a con- tested proceeding may last from 12 to 14 months.2 Since the realty mortgage must be foreclosed by judicial action, court costs and attor- ney's fees add to the expense of the proceeding.8 Moreover, the pur- chaser at the foreclosure sale acquires title subject to a 6-month re- demption right of the mortgagor4 In response to these factors, the Arizona legislature, in May 1971, adopted the deed of trust as an alternative security device to the tra- ditional mortgage.5 This comment will first explore the nature of the deed of trust, distinguishing this arrangement from the mortgage. The Arizona Deeds of Trust Act will then be analyzed and several unre- solved issues raised by the statute will be discussed. 1. See Legislative Council Comm. on Deeds of Trust, 29th Ariz. Leg. (Minutes of meeting, May 16, 1969) (copy on file in the offices of Arizona Law Review). 2. Comm. on Mortgage Law & Practice, American Bar Association, Cost and Time Factors in Foreclosure of Mortgages, 3 REAL PpO., PNon. & Tit. J. 413 (1968); Legislative Council Comm., supra note 1 (comments of Franklin J. Stowell, State Superintendent of Banks). 3. ARIz. REv. STAT. ANN. § 33-721 (Supp. 1972). The minimum suggested fee for aji uncontested mortgage foreclosure action in Arizona is approximately $300. MAmCOA ACouN BAn Ass'N, AnvisoRY MmuM LEoAL FEn Gurmw (1970); PintA CouNTY BAR ASSN, F n SCEEDULE (1970). A survey conducted in 1968 revealed an average cost of $445 for a $25,000 uncontested foreclosure in Arizona. Comm. on Mortgage Law & Practice, supra note 2. 4. Amiz. REv. STAT. ANN. § 12-1282(B) (Supp. 1972-73). If the court deter- mines that the property is abandoned and not used primarily for agriculture or grazing, the statutory redemption period is 30 days. Id. § 12-1282(A). 5. Id. §§ 33-801 to -821 (Supp. 1972). While the trust deed is not new in Arizona, historically it has been treated as a mortgage. See Ariz. Rev. Stat., Civil 3303 (1901); Ariz. Rev. Stat. 2358 (1887).

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